Development Ratings

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The credit crunch will inevitably have a negative implication on the level of international philanthropy and on charities fighting poverty in developing countries. Donors will have less money to give and charities will themselves lose money on their reserves. The developed world recession is also likely to slow the economic growth of most of the least developed countries that Development Ratings focuses on.

However, Development Ratings believes that donors should see the current climate as an opportunity to revisit their charitable portfolio and re-allocate money to the most effective charities so as to help maintain the current positive poverty trends and avoid a development crunch. Note that 1 .4 billion people in the developing world (one in four) were living on less than US$1.25 a day in 2005, down from 1.9 billion (one in two) in 1981.

See the full poverty trend details from the World Bank (link to external website)